CoAL expects first sales from Mooiplaats by mid 2009

Tuesday, 18 Nov 2008

It is reported that Coal of Africa Limited’s Mooiplats project was developing on track for commissioning by March 2008, with first sales set for the end of the first half of 2009.

Mr Simon Farrell MD of Coal of Africa Limited said that "I am pleased to report continued progress at the Mooiplaats coal project, largely in line with scheduled timing. Cutting of the underground coal portals will commence shortly and the second continuous miner is scheduled for handover on November 24th 2008.”

It also added that blasting of the access ramp floor has been completed, and concreting was in progress. Boxcut walls were being supported and the first continuous miner was expected to start cutting of the underground coal portals during the second half of November 2008, at which time Coal of Africa Limited’s expected to take delivery of its second continuous miner.

CoAL said that successful discussions were held with a local coal producer to obtain interim access to rail loading facilities, together with the proposed processing of a 2 000 tonne bulk sample of coal from the first underground production to assess lean coal qualities for marketing purposes.

Negotiations with Transnet Freight Rail were said to be close to completion and CoAL was confident that it would secure adequate rail allocation to match its already secured port capacity at the dry bulk terminal at Richards Bay.